North Carolina Down Payment Assistance Programs

Online Merchant account - The North Carolina Housing Finance Agency has two excellent programs for first-time Home Buyers. These programs will be the Mortgage Credit Certificate along with the deposit Assistance System.

If you meet the requirements for one of the plans and you buy a property between December 1, 2009 and January 1, 2009, you can even qualify for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who's a first-time Home Buyer? A First Time Home Buyer is someone who hasn't owned a house in the past three years. Here is precisely the same qualifying definition.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with low and average incomes. An MCC “reduces your tax liability according to a share of the mortgage interest which you pay.

You are able to claim 20% of the interest you pay as a credit in your federal income taxes, in case you are eligible for the MCC. You can save up to $2,000 on your taxes.

You may find a way to unite this, should you qualify for 2009. This could reduce a purchaser's tax liability by $10,000.

Who Qualifies for an MCC?

Who qualifies for an MCC is based on the cost of the property and also your income you're purchasing. Household income means the “gross income of the mortgagor and every other individual expected to live in the home who is 18 years old or older.”

The income and house price limits that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limitations 1 Person $61,500 2 Men $61,500 3 Persons $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New House $220,000 Existing Residence $210,000

Home buyers that need help with their down payment and closing costs may be able to get down payment assistance - or, in other words, interest-free, deferred second mortgages up to $8,000. The buyer just needs to pay and the load would pay around .

This plan has more rigorous income limitations than the MCC plan summarized above. Like the MCC application, it might be used in conjunction with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment assistance, nevertheless, can't be applied along together with the MCC. That is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are listed below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Individuals $45,650 3 Persons $51,350 4 Persons $57,050

Down Payment Assistance Sales Cost Limits New Dwelling $210,000 Existing Home $210,000